Raising Taxes is Not the Solution to the Entitlement Spending Tsunami

If the 2001 and 2003 tax cuts expire and the AMT is not fixed, taxes will soon grow to unprecedented levels. This will not solve the spending imbalance driven by Medicare, Medicaid, and Social Security.

Federal Spending as a Percentage of GDP Using CBO Extended Baseline, 2000–2082

Source: Spending and Revenues from CBO Long-Term Budget Outlook, December 2007 (Extended Baseline Scenario).